Center for Human Rights in Iran executive director Hadi Ghaemi told The Associated Press that Shahini was freed on bail of some $62,000, although it was unclear if he was allowed to depart the country.

The Foreign Desk website reported, according to one of Shahini's friends, he will not be able to leave Iran until an appeals court approves his release.

Shahini, a San Diego resident, was arrested by Iranian authorities last July while visiting his family and jailed for "collaboration with a hostile government."

Fox News reported in a recent letterfrom jail, Shahini, 46, wrote, "This charge is unjust and the Iranian government intended to commit this wrong against me, an innocent American citizen, for political purposes."

"I ask of you, please to not let Iranian government use me," Shahini pleaded in the letter. "I ask you beloved citizens and all human-loving individuals to not leave me alone and defend my rights, which is also the right of each and every one of you. Defending me is defending yourselves. Do not let me be alone."

According to The Foreign Desk, despite the nuclear accord reached with the international community last July, there has been a sharp increase in arrests of dual nationals in Iran. Some suggest this is an attempt by hardliners in Teheran to boost their leverage with the West.